Financial inclusion via mobile money: an empirical analysis of business transactions among maize retailers

Purpose Financial inclusion remains low among agricultural product retailers due to poor network, limited financial institutions, low education and income. Mobile money could bridge financial inclusion gap by digitalizing business transactions. We examined financial inclusion via mobile money adoption for business transactions among maize retailers. Design/methodology/approach Cross-sectional/primary data were obtained from maize retailers. Heckman selection model, fractional probit and ordered probit were employed. Findings Though almost all maize retailers used mobile money for personal transactions, majority did not use it for maize retail business, suggesting a financial inclusion gap. Maize retailers had positive perceptions about mobile money. Education, association membership, proximity to agents and being unbanked have positive associations with mobile money adoption, total transactions with mobile money and proportion of maize retail transactions done with mobile money. Maize retailers who perceive mobile money as easy to use, cheaper and faster adopt it for business transactions. Mobile money adoption is associated with higher monthly sales/retail volume of maize. Research limitations/implications Telecommunication networks should keep transaction charges low, especially for vulnerable groups like agricultural value chain actors and rural folks, and organize training programmes for them. Originality/value Studies that evaluate mobile money adoption for agricultural products trading in developing countries are uncommon.